Inheritance Tax Planning

The current allowance whereby no inheritance tax is charged is on the first £325,000 (per person) of someone’s estate – which is the value of their total assets they leave behind when they die.

There are a number of ways in which you can avoid a high inheritance tax:

  • Making gifts
  • Reducing estate while holding onto assets
  • Setting up a Trust

 

At Vance Financial Management, we offer a wide range of tried and tested inheritance tax solutions.

What We Do

Our team of experienced independent financial advisors will help you structure your finances in the most beneficial way. We can help you with:

  • Inheritance tax advice
  • Life insurance policies
  • Setting up discretionary trust
  • Setting up bare trusts

The Rules Around Inheritance Tax

Your estate is liable for Inheritance Tax if it is valued over the current £325,000 threshold when you die. £325,000 is the nil rate, meaning you will pay no tax on your estate up to this amount.

In addition to the inheritance tax (IHT) standard nil rate band, a residence nil rate band (RNRB) was introduced in 6 April 2017. This is available when residential property is left to direct descendants. This is available when residential property is left to direct descendants. The maximum RNRB available is £175,000. Everything above this figure is taxed at 40%.

There are a number of ways you can lower your tax liability, such as making gifts to charity for example. There is also additional flexibility if your home passes to your children, grandchildren, or great grandchildren.

Life Insurance Policies

A life insurance policy that is written under an appropriate trust can be used to pay towards any inheritance tax liability, protecting your family from at least some of the tax bill. In usual circumstances the payout from a life insurance policy forms part of your legal estate and thus subject to inheritance tax.

In writing an insurance policy in an appropriate trust you will ensure that the policy is paid directly to the beneficiaries rather than your legal estate thus avoiding this being taken into account when inheritance tax is calculated.

Trusts

There are two main types of trusts: a discretionary trust and a bare trust, each of which has different structures and purposes that can be explained to you in detail by our advisors so you can decide which fits your requirements best.

Vance Financial Management's Case Study & Advice on Inheritance Tax

Kind Words from our Clients

David has been financial adviser to my wife and myself for a number of years now.
I have always been impressed by his market knowledge , and desire to find solutions for retirement/investments that are best suited to our personal situation.
In addition,David helped to progress a critical illness claim after a fall at home 5 years ago ,resulting in premature retirement, when the company concerned was less than helpful initially.
His visits are always at a mutually suitable time and date , and David is a friendly and welcome visitor.
His investment suggestions and portfolio changes changes have proven to be good choices to date, and we look forward to David’s advice for years to come..

Dr A M

Doctor
David and his team have been helping me manage my finances for many years now through my working years and now in retirement. I’ve been confident that he has my interests at the forefront of everything he recommends and am happy to recommend him to anyone who needs sound advice.

Dr M G

Doctor
David Vance has been our Financial Adviser since 2013. Over the years he has given us sound advice on our Investments. He has always taken into consideration our views on Risk Factors with positive results.
We feel that we can contact David and his office staff at anytime.

W. & M. R

At our first meeting with David, more than five years ago, he quickly grasped the key issues in our financial situation and provided advice and guidance which has proved to be a very positive foundation for managing transition to retirement.
When circumstances required prioritisation of attention and energy to other areas of our lives, it was reassuring to know he was continuing to monitor and review. He quickly responded to any questions we had and promptly dealt with matters which required attention.
The prospect of challenges ahead is less daunting, knowing that we have his continued support and interest in ensuring positive outcomes in our financial planning.

Dr B. B.

Retired Psychologist
David always gives me exceptional advice, always taking care to make sure he understands my personal requirements. He visits my home at a time convenient to me and on his last visit, he potentially saved me thousands of pounds by working out that I could pay off my mortgage and invest the money saved in a more appropriate pension fund. Win, win! I am a single parent and don’t earn a huge salary. Financial advisers are for everyone though and I am delighted with the advice I have received. See you next year David.

Miss A. M.

HR Manager
Having used Vance Financial Management for several years now I would have no reservations in recommending David and his team to give sound advice on any future investments that any of my family or friends would like to make.

Mrs A.G.

Retired
I have known David Vance for approximately 14 years. Over that period, he has handled my Pensions and Investments. His knowledge and financial advice have stood me in good stead.
I would recommend him to anyone requiring impartial financial advice.

Mr W. O.

Business Owner
We have been clients of David Vance for over 5 yrs now and of all the financial advisers we have been connected with we have found him to be very knowledgeable about the current market and investments that are available. At no time does he put us under any pressure to make a decision but his experience has been invaluable to us and what we want to achieve not only for ourselves but our family. We would highly recommend David and his Company as a Financial Adviser.

Mr J. S.

Retired
I was introduced to David Vance, the Director of Vance Financial Management – just prior to the retiral of Jim Kane – in 2013.
I have always found David to be very professional, knowledgeable and customer focused.
My association with David has become a working relationship where I am happy to share all my private and personal information, in return for the best financial advice available. His advice to date has proved to be sound and I am very pleased with the monies that my investments have accrued over this period.
Dealing with David also makes me relaxed, knowing that he understands my lifestyle, he provides me with individual attention by considering the fine details of my financial position, he considers my future requirements and he always emphasises the possible attached risks.
Honesty and integrity are important factors to me and Vance Financial Management are a company that I highly recommend.

Mr A. W.

Retired
David is helping me reach my financial goals. His knowledge of pensions and other financial products is immense. The value of my pension now is way beyond my expectations – thanks to David’s advice.

Mr M. S.

Retired

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© 2022 Vance Financial Management. All Rights Reserved.
VANCE Financial Management is a trading name of David Vance Consulting Ltd, a company registered in Scotland (SC346801).
David Vance Consulting Ltd is authorised and regulated by the Financial Conduct Authority (FCA FRN 806587).
The FCA does not regulate tax advice, trusts and wills.
Registered Office: Suite 324-325, Baltic Chambers, 50 Wellington Street, Glasgow, G2 6HJ.
Tel: 0141 202 0753 – Email: info@vancefm.co.uk – Web: www.vancefm.co.uk
The guidance and/or advice contained in this website is subject to UK regulatory regime and is therefore restricted to consumers based in the UK